Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

On the 1st December 2011, Betty, Alvin and Yogee started a watch trading company, Baywatch Pte. Ltd. with a paid up capital of $150,000 to be subscribed equally by the three. The business agreed to take over from Betty her existing watch retail and servicing equipment based on a valuation of $50,000 in lieu of her cash subscription for her shares. Alvin and Yogee contributed cash for their share of the subscription.

December 1st, a shop lease was signed for $2,000 per month for two years with an option to extend for an additional year. A month's deposit was required plus three months rental for December 2011 to 28th February 2012. These were paid immediately.

December 2nd, $50,000 cash purchases were made for Watches from the distributor.

December 5th, Office Equipment worth $5,000 was purchased. $2,000 was paid while the remaining $3,000 will be paid over three installments at each month end, commencing at end of the December. No interests are charged for this installment plan.

December 23rd, $50,000 sales were made. $30,000 of the sales was cash sales while the balance will be paid on 24th January 2012. The cost of the Watches sold is $18,000.

December 24th, a $40,000 bank loan was taken with plans to expand the business. The full amount will be paid only at the end of 24 months.

December 31st, Depreciation for the Office Equipment was estimated at $200 for the month of December.

Salaries for the year due amounted to $3,000, to be paid on the 2nd of January 2012.

General Expenses including utilities, printing costs etc. were paid on 31st December 2011. The bills came up to $1,000.

A phone reminder on December 31 from the Supplier of the Office Equipment purchased on December 5th that payment is due. Full payment was made on the same day.

Rental Expenses for December adjusted.

The bank statement shows a Bank Charge of $100 for December

problem:
(a) Prepare the Journal Entries to record the above transactions. Include the date of the entry and a brief description of the entry. Please show all workings.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M924762

Have any Question? 


Related Questions in Accounting Basics

Learning outcomescode descriptiona1 in-depth and systematic

Learning outcomes Code Description A1 in-depth and systematic understanding of key investment concepts to facilitate strategic real estate investment decision-making A4 critical awareness and understanding of the evolvin ...

Question 1under the allowance method bad debt expense is

Question 1 Under the allowance method, Bad Debt Expense is recorded A. as an estimate. B. when an individual account is written off. C. several times during the year as needed. D. None of the above Question 2 Which amoun ...

Assignment comparing capital expenditurescomparing capital

Assignment: Comparing Capital Expenditures Comparing Capital Expenditures Select a company and access the last three years' annual reports. Next, select a company that is a direct competitor and download the previous thr ...

Assignmentapplication break-even analysiswhen expenses and

Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relation ...

1 many firms are relying on cloud computing also known as

1. Many firms are relying on cloud computing, also known as "the cloud," to perform key business functions. By moving transactional processing to the cloud, firms are exposing themselves to additional attacks as well as ...

District water company issued 10-year bonds with a face

District Water Company issued 10-year bonds with a face value of $100,000 and a stated interest rate of 8.0%. The bonds are dated April 1, 2016, and call for semiannual interest payments on each April 1 and October 1. Du ...

Question 1 owners of business firms are the only people who

Question 1 Owners of business firms are the only people who need accounting information. Question 2  Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote oper ...

Illustrative question- shane brookson july 1 2015 shane

Illustrative Question- Shane Brooks On July 1, 2015, Shane Brooks established an interior decorating business, Premium Designs. During the month, the following transactions are completed: July  1. Transferred cash from a ...

International accountingpart 1the weeks discussion covered

INTERNATIONAL ACCOUNTING PART 1 The week's discussion covered the following International Accounting Standards (IAS): #21 The Effects of Changes in Foreign Exchange Rates #27 Consolidated and Separate Financial Statement ...

Assignmentexercise 1 treatment of nsf checkthe bank

Assignment Exercise 1 Treatment Of NSF check The bank statement of Stone Supplies included a $300 NSF check that one of Stone's customer had written to pay for services that were provided by Stone. Required a. Show the e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen